Rough ride: Nissan slashes outlook, unveils Ghosn-related charge
Carmaker will attempt to repair partnership with Renault that has been strained since scandal broke
Yokohama — Nissan Motor has warned its profit will plumb six-year lows on waning global sales, underlining the challenges it faces as it grapples with the fallout from the fall of former chairman Carlos Ghosn. The Japanese carmaker, in its first results since Ghosn's arrest in November, unveiled an $84m charge linked to deferred compensation for the executive, who has been indicted for under-reporting his salary at Nissan from 2010 to 2018. The scandal has roiled global car markets and created tension between Nissan and its partner, France’s Renault, raising concern about the future of the groups that Ghosn wanted to merge. The dour outlook indicates an urgent need for Nissan and Renault to strengthen their partnership, but ties have been strained since the Japanese group first moved to remove Ghosn as chairman after his shock November 19 arrest in Tokyo. Nissan wanted to stabilise alliance operations, said CEO Hiroto Saikawa, who is due to meet newly appointed Renault chairman Jean...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.